When it comes to buying commercial real estate, here at CLC Global Advisors, we know a thing or two. In fact, we have facilitated the purchase, sale, and lease of commercial properties in some of the most recognizable buildings in New York and Florida. That’s why today we are dropping by to share a few tips to help you to make shrewder investment decisions.
Buying Commercial Real Estate: 4 Tips From a Reputable Intermediary
1. Know What You Are Looking For
Going into your commercial property purchase, you obviously have some idea of what you are looking for, but it’s also important to address some of the specifics too.
- What type of space are you looking for?
- How large of a space are you looking for?
- Where are you interested in purchasing?
- What districts are off-limit completely?
- What is your maximum purchase price?
- What is your preferred purchase price?
- What special services or facilities do you require?
- What special services or facilities are optional?
- Are there zoning restrictions and regulations that apply to your business? If so, how do these affect your commercial space?
- Do you have a floor preference when purchasing units or floors of existing commercial buildings?
- Do you have a building side preference?
The more specific details you are able to outline, the easier it will be to weed through available commercial real estate properties to find one that suits your needs. Keep in mind, though, that the more limitations you apply to your search criteria, the fewer options you are going to have to choose from.
2. VISIT EVERY PROPERTY!
We capitalized this for a reason – it’s VERY important! Whether you arrange to visit a property through the property owner or through a commercial real estate intermediary, it’s important to physically visit any property that you are considering. This allows you to see what you are purchasing but it also lets you get a better sense of the building. Some questions to consider when visiting your commercial properties include:
- Is the building made from quality building materials?
- Is the craftsmanship of the building up to standard?
- Is there any odor to the building like mold or damp?
- Does the building have the necessary safety equipment in place (for example, a sprinkler system) or is this something you will have to invest in?
- Does the building need any renovations and if so, do these renovations push the price of the purchase beyond your budget? If repairs or upgrades need doing, can you use these to negotiate the purchase price of the property?
Sometimes, when visiting a property, you may get a general feeling of unease or an unexplainable feeling that something just isn’t right. In these cases, always go with your gut. It’s better to “miss out” on a property that might have been right for you than you invest in a property that will sink you financially and maybe even ruin your business reputation entirely.
3. Get Every Property Professionally Inspected
Never, ever, ever agree to forego a professional building inspection. Many commercial real estate buyers choose to do this to speed up their sale or to incentivize the seller, but while this may seem like a good option, it’s another choice that could wind up costing you everything.
A commercial real estate inspection covers the building exterior, the building exterior, the building interior, and document review. In short, it ensures that the building that you are purchasing is structurally sound, legally available for sale, not susceptible to compromise (by mold, for example), and safe for occupation.
Failing to have a property inspected may not just mean financial expenses related to structural repair either, it can also mean fines and the potential of lawsuits from employees and patrons who visit your offices who are exposed to an unsafe environment.
4. Hire a Commercial Real Estate Intermediary
There are many benefits to hiring a commercial real estate intermediary, these include:
- Knowledge of off-market properties
- Contacts within the commercial property industry
- An in-depth understanding of the real estate market in specific areas
- Anonymity for large-scale transactions
- Experience with real estate negotiation tactics
Having a commercial real estate intermediary on your side means that you will get a better deal on your purchase price, you will have access to properties that aren’t available to everyone, and you can focus your attention on your business while an experienced real estate professional takes care of your commercial real estate purchase according to your directives.
Do You Need Assistance Buying Commercial Real Estate in New York or Florida?
If you’re in need of help with your commercial real estate purchase, sale, or lease, or if you are looking for a real estate intermediary, CLC Global can help. Give our office a call today at 305-467-3432 and let us know how we can help you!